(09) 576 4166
You are here: Home > Blog

We believe in passing on knowledge.

When you own a residential rental property, the tax you pay depends on whether you are an investor or dealer in residential rental property as dealers are taxed more heavily.

Rental property investors generate ongoing rental income, without any firm intent of resale, while property dealers/speculators buy property intending to sell it and have established a regular pattern of buying and selling property.

In this article we focus on the first category – rental property investors.

Rental income and paying tax

If you're charging rent, you may need to pay tax on the rental income you earn in the same year you receive it. Your rental income could be from a house, land, caravan, sleep-out, building, holiday home or room in your own home.

Read more…

Creating a winning business plan

Is your business plan up to scratch? Is it really doing its job as the blueprint to lead your business into the future? Let's look at some of the key points to be included.

The Mission
Upfront you need to describe what your business does and the goals and objectives you wish to achieve in your business – let's face it, you've got to have a dream or a mission and this is the place to state it.

The market
Researching your market and your competitors is important before you go into business. Information about market size and growth and whatever 'intelligence' you can find about competitors should all go into your business plan. This information can then help plan your marketing strategy – what segment of the market will you target?

Read more…

Unlike our Aussie neighbours, the New Zealand Inland Revenue Department has very strict rules on what you can and can't claim when it comes to clothing and personal presentation expenses. You might think the justification for why you should be able to claim it is legitimate but unless it falls into the below categories, unfortunately you are out of luck.

Below are guidelines on claiming clothing and personal expenses:

Read more…

Tucked away toward the back of your annual financial statements you will find details of your shareholder current account. It might be in credit or it might be overdrawn, and you might ask does it really matter?

The answer to this question is yes – it does!

We find current accounts is an area that is not well understood, and therefore the consequences of overdrawn balances can come as a shock to clients. Below we have outlined what a current account is and key things you need to know.

Read more…

Are you prepared if the IRD audited you?

Have you considered what would happen if you were subject to an audit by the Inland Revenue Department (IRD)? You may not have ever have considered this, knowing you keep good records and work with us each year to prepare and file your annual tax return. However, even we don't know when the IRD might come sniffing and start asking questions. Often the outcome is that everything is in order, however, getting to this point comes at a cost.

That's why we offer clients the option to purchase Audit Shield Accountancy Insurance.

Read more…

Fringe benefit tax (FBT) is a topic that often isn't well understood. What might seem like a generous gesture to an employee may actually see you digging into your pockets to pay extra to the tax man!

To help you better understand this area, below is an overview of the types of activities subject to FBT, with a particular discussion on use of motor vehicles which is the most common scenario our clients face.

Read more…

Save time with Xero

This month I want to talk a little about Xero. While most of our business clients use Xero (or MYOB), not everyone that could be taking advantage of Xero currently is. Many smaller sole traders, rental property owners, Family Trusts and self-employed contractors can also benefit from being on Xero.

The most basic Xero subscription is Xero Cashbook, which we can access on behalf of clients for nominal monthly rates. The main benefit of this for you is it provides us with direct feeds of bank and credit card transactions.

Read more…

Do you know your break-even point?

All business owners need to be aware of their break-even point - that is, the number of units they need to sell in order to cover their operating costs. 

Once you've reached your break-even point, it's time to celebrate: your business is no longer in the red, and you are officially earning a profit.

This article will show you how to calculate your break-even point so you can make wise business decisions that support greater growth.

Read more…

How to turn your hobby into a business

Thinking about turning your passion into a paying gig? These steps will help you avoid some common mistakes as you set out to earn an income from your favorite pastime.

Do you have what it takes?

Unless you've run a business before, it's easy to get carried away with the idea of how perfect it will be to get paid for doing what you love. Reality check: the stress of needing to earn an income from your hobby can quickly take all the pleasure out of it.

Running a successful business isn't all hobby indulgence. Unless you can afford to hire someone to take care of the bookkeeping, marketing and sales, expect to spend a lot of hours on necessary tasks completely unrelated to your true passion.

Before you start investing in your hobby-to-business idea, take this
online quiz to see if running a business is right for you. 

Read more…

End of year tax tips

Are you concerned about paying your terminal tax bill on 7 April?

We understand how terminal tax can sometimes put pressure on your cash flow. And, if you add into the mix that looming provisional tax payment due on 7 May (the final installment for the 2019 year), it can add up to a few sleepless nights, right?

If this describes your situation, stop losing sleep and pick up the phone to us. Let's look at the issue squarely, run the numbers on your options and take prompt action before your tax bill escalates.

Read more…

Contact Us Today

We'd love to hear from you!

Contact Details    Request an Appointment

Keep track of your cashflow with Cloud Accounting

Ask us how today!

Xero Beautiful Accounting SoftwareMYOB Essentials Live